Accountability and transparency

Required filing: a chance to show your stuff!

Originally published in Current, Jan. 19, 2004Commentary by Cindy Browne

Quick — what’s your reaction when someone asks to see your station’s
public file? A smile or a wince? And why does it matter? Read on.

In November the New York Times published a series on nonprofit accountability,
once again parading before the public the missteps of the American Red Cross
post-9/11 and the malfeasance of various United Way agency executives. You
could imagine nonprofit leaders across the country in a collective cringe.
They know that the misdeeds of a few hurt everyone.

Paul Light of the Brookings Institution reports that the public’s trust
in nonprofits fell after 9/11 and hasn’t recovered. As Light says in
a Times article, there has been a “steady drip, drip, drip of
news stories raising questions about many aspects of nonprofit accountability.”

Fallout from corporate scandals has only added fuel to the accountability
fire. The predictable result is a push for increased scrutiny and regulation
that won’t stop at the borders of for-profit land. Just ask the nonprofits
in New York, where state Attorney General Eliot Spitzer has turned up the
heat under charitable fundraising practices and foundation payout rates.

Why should public broadcasting care? Because, as GuideStar Chief Executive
Officer Bob Ottenhoff reminds us, “The days of assumed virtue are over.
Public broadcasting is part of the nonprofit sector and unless we all make
a concerted effort to support transparency and accountability, we will be
increasingly misunderstood and mistrusted” [Current commentary by Ottenhoff]. James Canales, Irvine Foundation c.e.o. and
KQED Board chair, concurred, stating at a recent conference that “the
nonprofit sector will have to allocate resources to meet a higher level of
accountability.”

Nonprofits are responding. Independent Sector, an association representing
more than 700 nonprofits, circulated a draft code of ethics. In conjunction
with BoardSource (formerly the National Center for Nonprofit Boards), the
association has published a paper outlining the implications of the Sarbanes-Oxley
Act for the sector — implications that go beyond the two provisions
that apply to all corporate entities. The United Way adopted upgraded accountability
and financial standards earlier this year. Other organizations are following
suit and so should public broadcasting.

Accountability as opportunity

How to increase your station’s transparency and build trust with your
community? First, take advantage of required filings. Treat them as key communications
tools deserving of top-level attention, not just government paperwork to be
delegated down the chain of command.

At a minimum, make sure your public file is complete and up to date. Make
it available in an accessible form and place. When someone asks to see it,
hand it over with a big smile and offer to answer any questions. You might
make a new friend for your station.

Pay real attention to the IRS Form 990s. They represent an opportunity to
show the world you are proud of your organization, including the fact that
you have talented staff and that you actually pay them reasonably well. Too
many stations list only the general manager in Part V of the form, the dreaded
section asking for names and salary information for officers, directors, and
key employees. (New York’s WNET is a notable exception, listing its
entire senior staff). Remember that funders and potential employees use these
forms to check out your station. Are you a going concern worthy of investment?
An attractive employer?

The same applies to whatever filing your state government requires. Familiarize
yourself with your state attorney general’s office. What is the AG’s
agenda and stance towards the nonprofit community? Be responsive to the office’s
priorities.

Finally, check out GuideStar, the
online database serving the information needs of funders and nonprofits. Ottenhoff,
who was a public broadcaster for decades, says the nonprofit organizations
that “get it” are taking advantage of the opportunity the site
provides to tell their story beyond the numbers posted in the Form 990. This
works to your benefit whether the news you report is good or needs a little
explaining. Good examples of organizations taking advantage of this free promotional
opportunity include KCPT in Kansas City and Make a Wish Foundation.

Accountability as declaration

Check with your state’s nonprofit association (and join, while you’re
at it). The Minnesota Council of Nonprofits publishes a Statement of Practices
and Principles and the Maryland Association of Nonprofits has developed Standards
of Excellence. You can publicly subscribe to these kinds of standards and
link to them from your website. More importantly, make them a real part of
your organization.

Accountability as community access

Expand the amount of information you publish on your website. Make it ridiculously
easy to find information about your organization.

Describe how you evaluate your station’s impact on the community
and how you measure progress towards community-based (not station-centric)
goals.

Provide links to your most recent annual report, Form 990 and public
file report.

List your board members and upcoming board meetings.

List your staff, their phone numbers and e-mail addresses. (Some stations
still appear to discourage public contact by making these impossible to
find on their sites.)

List your larger donors, giving funding ranges.

Publish your policy on use of your membership list. Show your members
you respect their privacy by making name sharing an opt-in choice rather
than the default setting.

Promote the fact that you subscribe to the standards of performance developed
by your state nonprofit association (see above).

None of these steps toward transparency will cost you anything out of pocket.
It’s simply a matter of deciding it’s important, making it a priority
and seeing it through. Then, when someone asks for your public file, you can
relax and smile.

Public broadcasting veteran Cindy Browne, based in the Twin
Cities area, consults with public broadcasters on strategic partnering, change
and organizational renewal.